Watch the Video on How to Treat Interest and Penalties Imposed by the CRA”
Video Transcript from “How to Treat Interest and Penalties Imposed by the CRA”
John Paul: Hi there, and welcome to Campanella McDonald’s Tax Tip video, where today we’re going to talk about interest and penalties charged to you by CRA.
Fabio: So when you late file a return and you have a balance owing, you’re going to get charged a penalty by the CRA. If you have installments owing on your corporate tax count or on your personal tax count, you can be charged interest if you make those payments late. So the main point that we’re trying to get across here is that you are not able to deduct any interest in penalties charged by the CRA as a deduction against your taxable income.
John Paul: Yeah, that’s why with all of our clients, we tell them to at least make sure they file their taxes on time, even if they don’t have the cash to pay the bill right away.
Fabio: Yeah, because that will at least eliminate the penalties component, not necessarily the interest, but the penalty component can become huge.
John Paul: So until next time, we’ll see you then.
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